AGRANA (AGR) Q1 24/25 earnings summary

Executive summary

• Q1 2024/25 revenue declined 2.3% to €944.3 million, with EBIT down 49.1% to €32.3 million and profit for the period falling 57.6% to €16.1 million, mainly due to lower sugar and starch prices, while the Fruit segment performed strongly.

• EBITDA dropped to €55.8 million from €90.6 million; EPS was €0.24, reflecting a challenging market environment.

• Dividend of €0.90 per share was approved at the AGM.

• Subdued consumption and high import volumes from Ukraine drove down EU sugar prices, negatively impacting earnings.

• The business trajectory confirms guidance for a significant year-on-year reduction in Group EBIT for FY 2024/25.

Financial highlights

• Revenue: €944.3 million (−2.3% year-over-year); EBIT: €32.3 million (−49.1%); EBIT margin: 3.4% (down from 6.6%).

• Profit for the period: €16.1 million (−57.6%); EPS: €0.24 (−58.6%).

• EBITDA: €55.8 million (−38.4%); net financial items improved to an expense of €9.2 million.

• Net cash from operating activities: €26.4 million (up from a net outflow of €91.1 million year-over-year); free cash flow reached €10.2 million.

• Equity ratio increased to 46.7%; gearing ratio improved to 48.7%; net debt reduced to €626.4 million.

Outlook and guidance

• Full-year 2024/25 EBIT expected to decrease significantly, with guidance indicating a drop closer to -50% year-over-year; revenue to see a moderate reduction.

• Q2 EBIT is projected to be about 50% of Q2 2023/24, mainly due to seasonal effects in the fruit segment.

• Fruit segment EBIT to improve significantly on steady revenue; Starch and Sugar segments to face significant and very significant EBIT declines, respectively.

• Total investment for FY 2024/25 planned at ~€120 million, moderately below prior year, with 12% allocated to emission reduction.